Weekend Update 1/17/2022
Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!
Market euphoria as July inflation finally slows off peak
🗻 Peaking inflation. August 12-month CPI was roughly flat M/M and decelerated more than expected growing only 8.5% Y/Y (from June’s 9.1%). However, largely driven by falling gas prices as food and housing continued to climb and core CPI remained flat. Markets celebrating data reinforcing last month’s peaking #InflationFears hype.
🛍 Confident Consumer. University of Michigan’s consumer sentiment index showed #ConsumerNoConfidence improvement in August likely driven by average gas price falling below $4. Related, July consumer spending data showed +7% growth largely echoing CPI with increasing rents more than offsetting declining gas prices. Stronger consumer sentiment bolstered the peaking inflation euphoria.
🚀 “Risk ON” continues. Market “Risk ON” rally continued as S&P 500 climbed another +3%－now up +13% since June. Growth has led the rally up +18% vs. Value up only +9%. Investors seem to be looking for the end of #RisingYields by end of year.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.